Bank of Cyprus Says Chief Executive Will Stay 2 More Years

NICOSIA, Cyprus — The largest bank in Cyprus says that its departing chief executive has agreed to stay on two more years under a new contract, overturning his decision to step down.

The official, John Patrick Hourican, a former Royal Bank of Scotland executive, announced in April that he would be leaving after two years at the helm of the lender, the Bank of Cyprus. He cited personal reasons.

Mr. Hourican’s new contract takes effect early next year.

The Bank of Cyprus chairman, Josef Ackermann, said on Tuesday that Mr. Hourican has been “instrumental” in improving the troubled lender’s performance.

Mr. Hourican took on the job a few months after international creditors gave Cyprus a 10 billion euro, or $10.63 billion, lifeline in March 2013.